38° and Overcast
New Jersey Governor Signs Bill to Protect Low-Income Households from Water Utility Cutoffs
New Jersey Governor Phil Murphy signed S3333/A5020 into law today, preventing water utility providers that have not joined the New Jersey Department of Community Affairs' (DCA) Low Income Household Water Assistance Program (LIHWAP) from taking certain collection actions against customers with arrearages.
The bill specifically prohibits public utilities, local authorities, and municipal utilities that provide water or wastewater services from assessing interest on arrearages, discontinuing services, or placing, selling, or enforcing a lien for unpaid balances if the utility provider has not signed the vendor contract required to receive LIHWAP payments.
Governor Murphy stated, "The residents of our state deserve to have access to essential utility services in their households no matter their income."
He emphasized that his administration will continue working closely with the Legislature to prioritize the needs of hard-working New Jerseyans who should not live in fear of their utilities being shut off.
Lt. Governor Sheila Oliver, who serves as Commissioner of DCA, urged utilities not yet participating in LIHWAP to join the program, so their customers can benefit from the available assistance.
"For those utility companies that fail to participate in LIHWAP for whatever reason, the bill signed into law today protects their customers from having their water and sewer service turned off because of inability to pay," Lt. Governor Sheila Oliver said.
Funded by the U.S. Department of Health and Human Services and administered by DCA, LIHWAP offers benefits directly to water and wastewater providers on behalf of residential customers.
The assistance can be used to restore services, avoid service disruption for those at risk of disconnection, and support household customers who may fall behind on their bills in the near future.
Under the new law, water and sewer service providers must inform customers about LIHWAP through every bill, written communication, and on their websites. Additionally, providers are required to submit customer arrearage data to DCA, which will be treated as confidential, to facilitate the administration of the program.
Providers found in violation of the bill's requirements will face penalties of $500/day for discontinuing service to a customer and $100 for failing to advertise eligibility for the program.
The legislation, sponsored by Senator Nilsa Cruz-Perez and Assemblyman Bill Moen, is set to take effect immediately and will remain in place until September 30, 2023. Both Cruz-Perez and Moen emphasized the importance of this bill in helping low-income families struggling to make ends meet.
DCA continues to encourage New Jersey residents to apply for the LIHWAP program. Eligible applicants must be water/wastewater bill holders, have a total gross household income at or below 60% of the state median income, and be responsible for paying their water and sewer bills directly to the companies.
Applications can be submitted through the DCAid portal or by calling 1-800-510-3102 for assistance from community action agencies partnering with DCA.
